Hot Stock MPHB Capital leaps more than 50% on first day of trading

Hot Stock MPHB Capital leaps more than 50% on first day of trading
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com  
Friday, 28 June 2013 10:54

KUALA LUMPUR (June 28): MPHB Capital Bhd (MPHBCap), the financial service and investment unit of Multi-Purpose Holdings Bhd, surged by more than 50% on its maiden day of trading.

At 10:41 am, MPHBCap shares were traded 43 sen higher than the offer price of RM1 with a trade volume of 14.69 million. The counter, which was traded between RM1.41 and RM1.53 earlier, surged to RM1.50 a minute after the opening bell.

In a recent note, Kenanga Investment Bank analyst Teh Kian Yong said subscribers of MPHBCap shares were to get the company’s financial services business “for free”, as its audited net book value for property assets was RM1.03 per share.

MPHBCap’s latest book value per share as at March 31 of this year was RM1.46.

As for its insurance and credit business, the company said in a recent Bursa Malaysia filing that its insurance subsidiary intends to expand its agency base.

MPHBCap’s insurance division also endeavours to enlarge its retail business by introducing new products and making inroads into broking and retail markets to capture a larger market share.

Meanwhile, its credit business is currently limited to a small and select group of customers whom MPHBCap is familiar with.

“The knowledge of customers enables us to mitigate risks associated with the provision of credit,” the company said in the filing.